The best thing I've found so far is from NewGold's Internet site. It is a report by Teknica dated June 25, 1999. The report pretty much says it all, but remember, the company hired Teknica to generate it for investor relations. Nevertheless, it is pretty informative, and it is apparently the game plan the company is following. I would not give you two cents for NewGold, but since Comercis is merging with the company, I expect to see a major gain in share value, especially after the reverse split and the company's new listing on NASDAQ.
At $0.65 to $0.75 a share, and taking into consideration there will be a 12:1 reverse split, you have to purchase a lot of shares to position yourself well for strong returns. That is, you need a lot of volume now for strong returns later. I realize there is risk, such as the shareholders not approving the merger, or something causing the deal to fall through, but there is no indication this sort of thing is occurring.
If everything continues as they have, I expect a huge payoff. The way I look at it, I am getting in (albeit a little higher than what I would like) without having to worry about the price shooting up so fast as most Internet stocks do, where you never get in without paying a premium. If I am right on Comercis, I will have entered at a more reasonable price.
Good luck,
Dennis |
